Dubai: Gold’s retail prices dropped by about 1 per cent on Monday, just a day before Americans cast their ballots in the 58th US presidential elections.
The precious metal, which had recently been gaining strength amid the uncertainty on the outcome of the polls, fell by about Dh1.50 per gram in Dubai.
As of 1:50pm, 24-karat gold was trading at Dh156.50 per gram, Dh1.50 lower than the previous closing rate. The price for 22K dropped to Dh147 per gram, while 21K and 18K traded at Dh140.25 and DH120.25, respectively
Gold’s sudden decline has partly been attributed to mounting expectations that the US Federal Reserve would increase the interest rates. Investors’ risk appetite was also boosted by the news that Hilllary Clinton got the all-clear from the Federal Bureau of Investigation over the use of a private email server.
“The markets are now focused on the US presidential elections.Today, FBI cleared Hillary Clinton in the email probe and markets have seen that as a positive sign and hence the fall in gold price,” said Karim Merchant, group CEO and managing director of Pure Gold Jewellers.
Spot gold dropped to $1,287.73 in the early session before settling at $1,289.04 per ounce by 0712 GMT, according to Reuters. US gold futures also dropped 1.16 per cent to $1,289.40 an ounce.
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